About the blog
Our objective is to help you understand the importance of having life insurance, Critical illness and Income protection. We will keep you updated on the latest changes to UK insurance policies and keep you informed with articles & guides.
Myths About Life Insurance
If you are young and healthy you don’t need it
Whether you need life insurance or not depends on a few factors. If you have a mortgage, debts or if you have financial dependants then you more than likely need some life insurance in place. A lot of younger people with no dependants will tend to look at an income protection or a critical illness policy which will help protect themselves not in the event of death or dying but getting an illness. Generally it’s better to buy a life insurance policy when you’re young and healthy as it costs less and you have more choice. In conclusion death is inevitable and can come at any age.
I’m uninsurable
If you have had a serious illness in the past it does not mean that you will be declined life insurance. Yes, they may need to write to your doctor and the premium might change but the rates insurers charge for some conditions are not as high as they once were. Don’t let pre-existing conditions scare you from applying for life insurance and protecting your loved ones future.
It is understandable that the majority of people are uncomfortable and too touchy on the subject of death and funerals. Usually, they don’t discuss the details and different options about a funeral plan. The apparent reason behind this reluctance is that they are not comfortable discussing this matter with anyone except their very close relatives, friends, or neighbors whom they have known for a long time and who are local to them.
Of course, the roots for this comfort level lie in their level of trust and faith they have in other people. So, when it comes to investments, insurances, or any other long term commitments, where someone is hooked for a long period of time, people prefer building clientele with reputable brands that they have heard about for years because they find them trustworthy. The companies which have been cultivating trust and reliability benefit from it when the time comes.
However, with life insurance, people tend to trust their local directors more as compared to a highly reliable outside company.
To this date, senior citizens or retired people are very reluctant to ask about details of a cheap funeral plan. The roots of this hesitation lie in their reluctance to speak to a “stranger” about their death because the whole idea of a funeral plan is still relatively new to them. They find it bizarre to think about making arrangements for a funeral. Since the majority of the target audience for life insurance is old school, it is quite a sensitive matter to discuss. Consequently, the insurance industry is still struggling to gain acceptability and traction.
Why Is Life Insurance Important?
As much lucrative and insensitive this subject may sound, but the aging citizens have started accepting that this is a reality, and this is something inevitable.
Also, the subject is so sensitive that when any such situation arises, the close circle who are responsible for making appropriate arrangements go into shock. Their struggle to accept a significant loss is real. In a situation like this, if they have to make arrangements for funeral, then it is quite natural that they can miss out on essential details.
Other than this, the Millennials have a fast life and routine. For that matter, ‘time’ has become a significant asset. Since no one has got that kind of time, the need for a professional service is very much there.
Having said that, this trend will gain traction in the coming years because now a lot of middle-aged people are aware of the funeral planning concept. The bucket loads of money which funeral plan companies have been investing in marketing for so many years have started to bear fruits. So, by the time these middle-aged people will reach their 50s or are close to retirement, they will be more open and acceptable to the idea of purchasing a funeral plan.
How to get a cheap funeral plan?
The answer to the question about getting a cheap funeral plan is – it depends on a client’s requirements and varies from scenario to scenario. Although many reputable companies out there offer great packages at an affordable price, sometimes a local director can offer a better deal to match that price.
Compare the prices:
The fact, however, remains that the local funeral directors usually charge way more than the most renowned, reputable, and expensive companies offering their services nationwide. Big companies have a nationwide business, and they make profits even at a much lower cost because of their vast outreach.
Professionalism and expertise: Another reason to prefer a big reputable company over a local director is their professionalism. Being in this industry for years, big companies are more experienced and professional. They know the demands and requirements inside out, and they understand they’ve got to offer you the best service to survive in cutthroat competition.
Standard rates: On the contrary, each time a local service provider sells his package, he would charge a different price to different customers. There is no standard rate. This never really happens with big companies because they are professional and experienced, even though they are selling their services online. They charge a standard fee, as per the services of the package, regardless of who the customer is.
Even if a local director offers the same cost for a package as the big company does, they cannot match the level of service one can get from the latter against that price.
If I buy life insurance through a broker, what happens when a claim is made?
When a claim is made for life insurance, the family of the claimant would need to get in touch with the insurance provider directly. Now, it does not matter how the life cover had been taken out. As long as it has been done correctly, and all disclosures have been made at the time of setting up, the claimant’s family will get the lump sum they are due.
Efficient: Although big companies offer life insurance at a lower price but, purchasing it from a local broker can save quite a lot of time to pick the right policy. Also, a local director can save the claimant’s family from the hassle of chasing money when a claim is made.
Qualified Advisors: The apparent reason for this efficiency is that brokers (advised based) or financial advisers are qualified. They not only suggest and advise about the ideal policy as per buyers’ circumstances, but they also ensure the policy which is being purchased is done correctly so that at the time of claim, an insurance provider can’t turn it down.
So the next time a senior citizen or retiring person gets a call from some life insurance broker about life insurance, there is no need to be hesitant or shying away from listening to his offer. Life insurance is just as crucial in the financial market as doctors are in the health industry.